push notifications not working with testflight and xcode 8 beta

I have successfully uploaded my app to itunesconnect to use for testing using testflight. I'm using xcode8 beta. Everything works fine except for the push notifications. I am receiving the device token and uploading to my server and the message status is shown as delivered however the device is not receiving the pushed message. When I uploaded the app the following signing identities were selected:

Additionally I have an entitlements file which looks like this:

I have an valid adhoc profile for production as well as one for development. While uploading it will not let me select Distribution for the release code signing identity so that's why I have selected developer.

To dispatch push notifications through TestFlight, you need the production receipt on the server side. The production receipt is created in the Apple Developer Center under the bundle/app id. The production certificate should be downloaded from the ADC site, converted from .p12 to .pem using openssl, and then referenced by the script that performs the push notifications.

openssl pkcs12 -in MyCert.p12 -out MyCert.pem -nodes -clcerts

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